The Indonesian Palm Oil Association (GAPKI) has signed a memorandum of understanding (MoU) on palm oil cooperation with the Uzbekistan Fats & Oils Association, cracking open a promising opportunity for palm oil industry players to enter Uzbekistan, which was once the heart of the legendary Silk Road that linked Asia, Mideast, Europe and Africa.
After signing the MoU in Tashkent, Uzbekistan, GAPKI Chairman Eddy Martono said that the MoU will become a catalyst for increasing cooperation on palm oil trading and investments through the exchange of information, technology and best practices.
“We’re very enthusiastic with this cooperation agreement. It will open our opportunities to increase palm oil exports and investments. It will also provide chances for us to launch positive campaigns on palm oil among consumers in Central Asia,” Eddy said, highlighting the sustainability of Indonesian palm oil through the certification of Indonesian Sustainable Palm Oil (ISPO).
The Uzbekistan’s Oils and Fats Enterprises Association (Assotsiasiya Uzyog’moysanoat) Chairman Oybek Zuparov expressed his willingness to learn from Indonesia on developing palm oil businesses, including the processing ones in Uzbekistan, which needs around 488 thousand tons of vegetable oils per year, while its local production can only meet half of the need and the rest has to be imported, including 60-70 thousand tons of crude palm oil (CPO).
“The MOU has proven our joint commitment to increase our cooperation in sharing knowledge, technology, and best practices on palm oil processing and in increasing the bilateral trade volume between the two countries,” said Zuparov.
Witnessed by Indonesia’s Ambassador to Uzbekistan, Surnaryo Kartadinata, the signing of the MoU was conducted in conjunction with Indonesia’s participation in the conference of Asia Grains and Oils 2023, which was held on 14 – 15 September 2023 in Tashkent, the capital city of Uzbekistan.
“Indonesia is the world’s largest producer of palm oil. The palm oil plays a very important role in the national economy of Indonesia. The cooperation agreement has shown the joint commitment of Indonesia and Uzbekistan to further advance the palm oil business in the two countries,” said Surnaryo.
Apparently, as part of efforts to strengthen the commitment, the Indonesian Embassy held the Indonesian Night event on Saturday night, 16 September 2023, at the Tashkent International Hotel in Tashkent, the capital city of Uzbekistan, where the two countries’ foods and thoughts were mixed in a kind of melting pot that will then help catapult their efforts toward reaching bigger and better results. There visitors can enjoy Indonesian foods—bakso, bakwan, and coffee of Indonesian specialty, and Uzbekistan foods, such as lagman, which apparently can taste better with blending of palm oil.
Eddy Martono is confident that the cooperation will create a new strong footing for Indonesian palm oil to grow as a leading vegetable oil in Central Asia, which includes Uzbekistan, Kazakhstan, Tajikistan; and neighboring Eurasian countries, which include Moldova, Armenia, Azerbaijan, Georgia and Russia.
“The cooperation with Uzbekistan is part of our strategy to penetrate the new market in Central Asia. Uzbekistan is Indonesia’s second biggest trading partner in Central Asia after Kazakhstan,” Eddy said after signing the MoU on Thursday, 14 September 2023.
Certainly, such a hope is not at all a pipe dream that is unlikely to be realized. Considering the rising demand for vegetable oils in Central Asian countries and neighboring Eurasian countries with a total population of more than 300 million, it is a strongly-grounded hope.
It is not to mention the rising increase of tourists visiting the regions, where they will certainly need foods, energy and other personal care products based on vegetable-oils.
In addition to that, China under the administration of President Xi Jinping has been pursuing serious efforts to revive the old Silk Road, which used to pass through Central Asian region, including Uzbekistan under the ancient kingdom of Samarkand. For such purpose, President Xi Jinping has launched a program called Belt and Route Initiative (BRI), which is also known as the new Silk Road. He has secured the commitment of countries in Central Asia, including Uzbekistan, to improve the interconnectivity in the region through development of physical infrastructure, especially railway lines, which are expected to link China, Middle East and Europe through Central Asia.
“As one of the leading producers and consumers of vegetable oils in Central Asia, Uzbekistan has the potential to become the regional hub of vegetable oils production and trading. Geographically located in the center of Central Asian region, Uzbekistan can strategically link us to other countries in the region,” concluded Eddy. (By Benget Besalicto ST)
